Bathroom firm is coping with challenging retail conditions

Bathroom and kitchen firm Norcros has said the strong performance of its overseas business has helped the firm deal with challenging conditions in the UK.

The firm which has its headquarters in Wilmslow issued a trading update in advance of its annual general meeting.

The update covers the 13 week trading period to July.

The firm said its overall trading for the first quarter was in line with the board’s expectations.

Revenue for the 13 week period was 15.5% higher on a reported basis compared to the same period last year.

On a like-for-like basis group revenue was 0.9% higher than the previous year.

This performance reflected strong revenue growth of 6.9% in the group excluding Johnson Tiles and the expected revenue reduction which was largely due to the Kingfisher unified programme as previously reported.

UK revenue was 19.2% higher than the same period last year including revenue from recently acquired Merlyn, which performed strongly in the period.

On a like-for-like basis, UK revenue was 3.4% lower than in the same period.

Nick Kelsall, group chief executive, said: “Our performance in the first quarter continues to demonstrate the resilience of our focussed and diversified business model.

“Whilst the UK retail sector continues to be challenging, strong performances at Triton and Merlyn, the benefits of the cost restructuring at Johnson Tiles and the sustained progress in South Africa gives the board confidence that the group will continue to make progress in line with its expectations for the current year.”